Gold Loses Bullish Hedge Fund, Tailwinds are Ahead for SPDR Gold Trust (ETF) (NYSEARCA:GLD)Author: Victor AlagbeLast Updated: March 12, 2020 SPDR Gold Trust (ETF) just lost the support of one of its strongest backers as an hedge fund manager slashed its stake in the ETF. Reuters reports that Paulson & Co has slashed its stake in the SPDR Gold Trust ETF (the largest gold-backed ETF in the world) in the second quarter. Yet, the ETF might be running into tailwinds going forward as new developments causes the price of gold to rise.Paulson has maintained its stake in the SPDR Gold Trust ETF consistently in the last six quarters. However, the hedge fund sold part of its holding before gold prices took the 6.6% fall in July. A 13F-HR filing for the quarter ending June 30 shows that the hedge fund sold 1 million shares out of its 10.2 million shares in the index for about $1.06B.Did Paulson know something that the rest of the market doesn’t?Paulson got about $1.06B from the sale and its exit preceded the 6.6% drop in Gold that was caused by selloff in Shanghai and New York. Mike McGlone, director of research for ETF Securities in New York says, “it appears Paulson was astute to lighten up some before the July plunge.” Mike also says, “They may have been part of the massive liquidation in July too.”Paulson’s reduction of its stake in the SPDR Gold Trust (ETF) did not only precede the crash in gold prices. It also preceded the 3.5% crash that the ETF lost in the second quarter. The SPDR Gold Trust ETF has dropped another 6% from the end of June to its lowest point since 2008 last week. Fears about the weak demand for gold has been one of the chief reasons the ETF has been seeing a waning of bullish bets.Tailwinds ahead for SPDR Gold Trust (ETF) Gold price is climbing as the market opens today as uncertainty persists in the capital markets. It was reported that spot gold was up 0.4% to $1,117.80 an ounce as at 0600GMT. U.S gold for December delivery also recorded a 0.4% jump to $1,117.30 an ounce.The nice uptrend in gold has started since last week after the devaluation of the Chinese Yuan. Last week on Thursday, the bullion had recorded a bullish run that saw it rising to a three-week high at $1,126.31.The Financial Express reports that the price of the yellow metal is set to rise at the devaluation of the Chinese Yuan makes gold a desirable save haven. The positive view of the report contradicts the recent moves of Paulson & Co. Gold obtained a support last week as the yellow metal refused to sink much further in a rocky market.Those with shares in the SPDR Gold Trust (ETF) will be hoping the pressure lets up soon.